Paul Tudor Jones speaking at the World Economic Forum in Davos, Switzerland, January 21, 2020.
Adam Galica | CNBC
Legendary trader Paul Tudor Jones is reportedly buying bitcoin as an inflation hedge as central banks around the globe print money to relieve coronavirus-battered economies.
Jones, one of Wall Street’s most-successful and seasoned hedge fund managers, revealed in a message that one of his funds holds a low single-digit percentage in futures on the cryptocurrency, Bloomberg News reported. He compared it to the gold trade in the 1970s, according to the report.
Bitcoin futures trading on the CME jumped 5% on Thursday.
Jones, founder and chief executive at Tudor Investment Corp., told CNBC in March that he thought the stock market could be higher by June if coronavirus cases began to peak. The investor said at the time that he expected stocks to endure a choppy April but that, ultimately, equities would again climb.
“I do think the stock market’s going to find a bottom once we get a peak in the epidemic curve, [there’s] not a doubt in my mind the stock market will rally,” he said on March 26. “My guess is we’ll be higher three or four months from now, five months from now, than lower than where we are right now.”
Jones’ forecast appeared intact on Thursday with the S&P 500 up about 18% since his comments in late March and with the Nasdaq Composite now positive for 2020.
His comments were of particular importance at the time given the historic market sell-off just days earlier that saw the Dow Jones Industrial Average and S&P 500 each sink more than 25% each from their respective all-time highs.
— Click here to read the full Bloomberg News story.